REA Group has jumped a major hurdle in its proposed acquisition of portal business iProperty Group.
Earlier today, iProperty shareholders approved the $578 million takeover at a meeting in Sydney.
The board’s support for the acquisition was strongly endorsed by shareholders, with 97.48 per cent of votes cast in favour of the deal.
However, the deal still has to be approved by the Federal Court, with a hearing scheduled for 2 February. The acquisition would then take effect on 16 February.
REA Group signed an agreement with iProperty in November to buy the company for $4 per share.
That valued iProperty at $751 million, although REA Group would only pay $578 million as it already owns 22.67 per cent of the company.
Deloitte subsequently valued iProperty shares between $3.59 and $4.54.
While REA has a strong presence in Australia, iProperty is based in Malaysia and also does business in Singapore, Hong Kong, Indonesia, India, Thailand, the Philippines and Macau.
According to results released earlier this month, iProperty posted cash collections of $32.3 million for the last three months of 2015 – an increase of 49.5 per cent on the December 2014 quarter.